Providing a General Definition of the Enterprise Structure in SAP S/4HANA

After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Name the enterprise structures used in SAP S/4HANA and their related tasks
  • State the possible assignments between the enterprise structures

Definition of the Enterprise Structure

Welcome to Lesson 2

After exploring the structures of our Bike Company, we now need to model the Bike Company in SAP S/4HANA. We will understand the individual enterprise structures from the applications, and how to define them. We will use the enterprise structures in later units, for example in the lesson for master data records.

We describe the following enterprise structure based on an SAP S/4HANA On premise system. Most enterprise structures are identical to those in SAP S/4HANA Cloud. The use and the necessity of the enterprise structures are the same, whether it is in SAP S/4HANA On premise or in the SAP S/4HANA Cloud system.

Business Scenario

Now that we know our structures in the enterprise, we need to think about how we define a "picture" of our company inside SAP S/4HANA and the possible corresponding applications. First, we will focus on the SAP S/4HANA side.

Application Versus Customizing

Why do we need to model our company in SAP S/4HANA? We need to differentiate between two things:

  • On the one hand, we have different applications for the departments to run different parts of our business processes. This is where we do the daily work, such as order materials and sell products. This is done in the applications side of SAP S/4HANA

  • On the other hand, we need to configure the business processes for each application and for each enterprise structure. This is where we talk about Customizing in SAP S/4HANA

Defining the enterprise structures isn’t done during daily business. It takes place as part of configuration or Customizing of the system. It is a level behind the daily applications.

In the figure below, select the numbers to read a description of the enterprise element.

Define the Enterprise Structure

Once we have defined the necessary enterprise structures, the second step is to assign them.

Assignments are done for historical reasons. As such, they do not always seem logical. Nevertheless, we still need to do them.

In the figure below, select the numbers to read a description of the enterprise element.

Assign the Enterprise Structure

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